Contracted Hours Question

[KBCsMommy]

I want to move from a weekly rate to contracted hours. I'm confused because it seems I may lose money if I do this.

Can you help me figure this out?!

Currently my rates are $150.00 for full time Mon- Fri 7:30 to 5:30.
I've been told by a few providers in my area that my rates are too low. So I am planning on raising my rates anyways. How do I go about raising my rates and going to contracted care hours at the same time.

I already found Blackcats letter to inform parents that I will be going to contracted rates but I don't know how to word the money part!!

I want to address specifically the families that abuse the 7:30 on the dot drop off and 5:30 on the dot pick up. Without sounding like a b&^%$ I think they need to be paying a lot more for 10 hours a day for care when they are home watching tv.

Help Please

[LaLa1923]

1. I'd rather make a few less dollars a week than have someones kid here when they don't need to be. kwim?

2. All of my families have different contracts.

Family A. pays $200 a week for an infant spot. They are allowed to come 7:00-5:30, I know what you're thinking, that's a lot of hours. They were my first family I switched to contracted hours. She drops off 7:11 on the dot every morning and picks up by 5:05-5:10. She is a very good friend of mine now and i love her daughter. She often does not come on fridays but I still get paid.

Family B. pays $400 a week for an infant spot and one toddler spot. They are contracted for 11:00-4:30. We will be reviewing their contract as their 2 week trial is over now. I will allow an earlier drop off since he has to take his daughter across town to some school her mom enrolled her in. They are never here past 4:15.

Family C pays $125 for their SA child. I charge $25 more per week than the average before and after school care. Why? I do not charge for those random early dismissal days. I'd rather have a little more all year than only a few days. I do charge more when there's no school. I have her for about 3 hours a day.

I only contract for what they NEED. I never contract for anything beyond that. I make more money in the long run.

[LaLa1923]

I want to move from a weekly rate to contracted hours. I'm confused because it seems I may lose money if I do this.

Can you help me figure this out?!

Currently my rates are $150.00 for full time Mon- Fri 7:30 to 5:30.
I've been told by a few providers in my area that my rates are too low. So I am planning on raising my rates anyways. How do I go about raising my rates and going to contracted care hours at the same time.

I already found Blackcats letter to inform parents that I will be going to contracted rates but I don't know how to word the money part!!

I want to address specifically the families that abuse the 7:30 on the dot drop off and 5:30 on the dot pick up. Without sounding like a b&^%$ I think they need to be paying a lot more for 10 hours a day for care when they are home watching tv.

Help Please

Just let everyone know you have new rates and hours will now be contracted. period

[TwinKristi]

What part of CA are you in? $150/wk or $30/day sounds cheap to me too, unless you're in a few specific areas that I know have a lower COL. I do a daily rate and parents get a discount on a FT child and the fees are paid on the first of the month unless otherwise specified like one single mom who pays 2 payments to me instead of 1.

Is the problem you're having that your parents are taking advantage of your hours because they're paying you a weekly rate anyway and figure you're open from 7:30-5:30 so they'll get their money's worth by being there the entire time even if they're off work? Rather than changing from a weekly rate to contracted hours, I would continue charging a weekly rate but let them know that's ONLY for their CONTRACTED hours. Perhaps say your weekly rate is going up to $X a week for FT care between 7:30am and 5:30pm but contracted hours will be defined. If mom A works from 8:30-4:30 then her contracted hours should be 8am-5pm. If mom B works from 8-3 than her contracted hours will be from 7:30-3:30 or whatever they need. But maybe rather than making it a complicated situation you can individually talk to the parents about their hours of need and that you're making some scheduling changes and need to know if your hours can be altered to fit their needs. If everyone is off work by 4:30 there's no reason for you to be open until 5:30 for them to watch TV in peace while your day is being dragged out, no thank you! I'm really only flexible on hours with one family because mom works in the city and grandma helps and works from home some days. So even though they drop him off early, they pick him up early as well. Occasionally they switch to a later half day, like today they're coming from 2-6:30pm due to his therapy. While it's not my normal hours, it's still far less hours than I usually watch him for the same price. And other than that I just communicate with parents on their needs. Like a mom needed to be somewhere an hour earlier than usual so I opened 15 mins earlier than normal for her at no extra charge. But in turn they always drop off and pick up on time and pay in full on time. Each family has individual needs and I understand that and am probably a lot nicer than some people would be about it. But if I had a mom who was coming at the last minute and here first thing every day only because she's paying a daily rate that wouldn't fly for me.
We have contracted hours for my daily rate, and I charge about 50% more than you do and I live in the North Bay Area.

[Crazy8]

First, come up with how you will determine your rates and decide what those rates will be. Some do less $ for earlier closing times, some do flat # of hours, etc. One thing I would NOT do is go hourly - when you start talking hours people think if they come pick up an hour early one day they can either not pay for it or use that hour another day. So, do not mention hours!!!

After you figure out what your rates are I would draft a letter saying that new rates will be going into effect on whatever date (I'd give at least 30 days notice). Explain that you are moving from open to close hours to contracted hours and that their rate will be based on the hours they need care.

I do contracted hours but my rate is based on anything in the 7:30-4:30 range - they pay more for anything outside of that. I don't do a lower rate for less hours but families need to contract the hours they need/use. For instance if a parent drops off at 8:30 every day that is their contracted drop off time, not 7:30am. I've never changed it on current families, its always new families, so it is easy to get their hours needed BEFORE giving them my rate.

[KBCsMommy]

What part of CA are you in? $150/wk or $30/day sounds cheap to me too, unless you're in a few specific areas that I know have a lower COL. I do a daily rate and parents get a discount on a FT child and the fees are paid on the first of the month unless otherwise specified like one single mom who pays 2 payments to me instead of 1.

Is the problem you're having that your parents are taking advantage of your hours because they're paying you a weekly rate anyway and figure you're open from 7:30-5:30 so they'll get their money's worth by being there the entire time even if they're off work? Rather than changing from a weekly rate to contracted hours, I would continue charging a weekly rate but let them know that's ONLY for their CONTRACTED hours. Perhaps say your weekly rate is going up to $X a week for FT care between 7:30am and 5:30pm but contracted hours will be defined. If mom A works from 8:30-4:30 then her contracted hours should be 8am-5pm. If mom B works from 8-3 than her contracted hours will be from 7:30-3:30 or whatever they need. But maybe rather than making it a complicated situation you can individually talk to the parents about their hours of need and that you're making some scheduling changes and need to know if your hours can be altered to fit their needs. If everyone is off work by 4:30 there's no reason for you to be open until 5:30 for them to watch TV in peace while your day is being dragged out, no thank you! I'm really only flexible on hours with one family because mom works in the city and grandma helps and works from home some days. So even though they drop him off early, they pick him up early as well. Occasionally they switch to a later half day, like today they're coming from 2-6:30pm due to his therapy. While it's not my normal hours, it's still far less hours than I usually watch him for the same price. And other than that I just communicate with parents on their needs. Like a mom needed to be somewhere an hour earlier than usual so I opened 15 mins earlier than normal for her at no extra charge. But in turn they always drop off and pick up on time and pay in full on time. Each family has individual needs and I understand that and am probably a lot nicer than some people would be about it. But if I had a mom who was coming at the last minute and here first thing every day only because she's paying a daily rate that wouldn't fly for me.
We have contracted hours for my daily rate, and I charge about 50% more than you do and I live in the North Bay Area.

This is exactly what is happening. But it's only one family. And their child is the only one I have problems with. Why? Well dcg is here 50+ hours a week and then gets dropped off at whoever will take her on the weekends. DCM is a real piece of work!!
I've been tempted to term MANY times but the family pays me well and dcg will be going to preschool within the next year anyways.

But, I want to go to contracted hours anyways. Even though I have this issue with the one family it's just a push to do what I need to do.

I have the same rates as I've had since I opened 3.5 years ago. I'm in the Central Valley.

[wdmmom]

I would issue a letter that you are going from contracted hours and that their rate may increase or decrease depending on the families need.

For example: I only offer a maximum of 9 hours per day unless they are contracted for 4 10 hour days.

I also charge based on departure time. The earlier the pick up, the cheaper the rate.

I would tell families that you will honor the $150 per week for 9 hour days and a pick up by 4pm. $160 for 430pm pick up, $170 for a 5pm pickup and $180 for a 530pm pick up. I bet you'll be able to close by 5pm each day.

[littlemissmuffet]

I don't miss out on any money by doing contracted hours - I make the same money and work less...

All my parents pay me the same monthly flat fee rate - part-time or full-time. All my parents are allowed to bring their children during work/school hours only, plus a reasonable commute time - you can get anywhere in my city in 20 minutes and all my parents work 8 hours (or less) with a 30 minute lunch hour so I don't allow kids here any longer than 9.5 hours (except for one client who doesn't bring Fridays).

[butterfly]

I would issue a letter that you are going from contracted hours and that their rate may increase or decrease depending on the families need.

For example: I only offer a maximum of 9 hours per day unless they are contracted for 4 10 hour days.

I also charge based on departure time. The earlier the pick up, the cheaper the rate.

I would tell families that you will honor the $150 per week for 9 hour days and a pick up by 4pm. $160 for 430pm pick up, $170 for a 5pm pickup and $180 for a 530pm pick up. I bet you'll be able to close by 5pm each day.

How do you handle a late pick up? If they are contracted for a 4pm pick up time, but come at 4:30pm a day or two due to some weird circumstances?

[Blackcat31]

I don't miss out on any money by doing contracted hours - I make the same money and work less...

Yes, I actually make more money with contracted hours and work less.

I would issue a letter that you are going from contracted hours and that their rate may increase or decrease depending on the families need.

For example: I only offer a maximum of 9 hours per day unless they are contracted for 4 10 hour days.

I also charge based on departure time. The earlier the pick up, the cheaper the rate.

I would tell families that you will honor the $150 per week for 9 hour days and a pick up by 4pm. $160 for 430pm pick up, $170 for a 5pm pickup and $180 for a 530pm pick up. I bet you'll be able to close by 5pm each day.

This is how I do this as well. If you normally charge $150 per week, then that is the base rate you charge and add more $ for more time.

My earliest pick up is 3:30 so my normal weekly rate is for 3:30 pick ups and later pick ups are charged at a higher rate... and so on...

How do you handle a late pick up? If they are contracted for a 4pm pick up time, but come at 4:30pm a day or two due to some weird circumstances?

If someone contracts for 4:00 but doesn't pick up until 4:30 then they are expected to pay $30 for a late pick up fee. ($1 per minute.)

Doesn't matter if I have other kids here or not. If they scheduled for 4:00, then that is the time they "bought".

If they know they will need more time occasionally, then they need to schedule it in advance and pay for the additional time.

[wdmmom]

How do you handle a late pick up? If they are contracted for a 4pm pick up time, but come at 4:30pm a day or two due to some weird circumstances?

If parents are beyond their designated pickup time, it's $10 for every 15 minutes. (16 minutes = $20) If it's beyond closing time, it's $1.00 per minute.

[butterfly]

If someone contracts for 4:00 but doesn't pick up until 4:30 then they are expected to pay $30 for a late pick up fee. ($1 per minute.)

Doesn't matter if I have other kids here or not. If they scheduled for 4:00, then that is the time they "bought".

If they know they will need more time occasionally, then they need to schedule it in advance and pay for the additional time.

thanks! I've been debating about going this route with my next contract renewal. I really dislike keeping track of minutes though for late arrivals. I currently just state that late arrivals will not be tolerated and services will be terminated. I am not willing to work extra even at a dollar a minute.

[Blackcat31]

thanks! I've been debating about going this route with my next contract renewal. I really dislike keeping track of minutes though for late arrivals. I currently just state that late arrivals will not be tolerated and services will be terminated. I am not willing to work extra even at a dollar a minute.

I hear you! To me, it's about respecting my policies not paying for additional time....

My late fees are as follows:

First late: $1 per minute
Second late: $2 per minute
Third late: possible termination

[Cradle2crayons]

I charge the same thing whether I'm contracted or not. Currently I do only contracted care.

If yu want to raise your rates, simply send o a note saying the rate from now on will be xxx.

Also, talk to each parent and find out their hours, add travel time and Whalah that's all.

I do my contract just like that.

[littlemissmuffet]

How do you handle a late pick up? If they are contracted for a 4pm pick up time, but come at 4:30pm a day or two due to some weird circumstances?

I only contract hours between 7:30am and 5:00pm. If someone is late outside their usual contracted hours, I charge the usual $1/minute regardless of circumstance, or wether or not I have other children here. Anything over 5:00pm is $5/minute